Supply Chain Management

Basic Concept

In order to realize high-quality manufacturing and a sustainable society, the Tsubaki Group is cooperating with its suppliers to conduct procurement activities.

Basic Procurement Policy

The following is Tsubaki’s Basic Procurement Policy:

1.Fair and Equitable Dealings

We provide open, fair, and equitable opportunities to suppliers inside and outside Japan wishing to conduct business with us. In selecting suppliers, we will take into consideration quality, cost, delivery schedules, the ability of the supplier to provide a stable supply, technological strength and know-how, the financial position of the supplier, and other factors.

2.Developing Relationships of Mutual Trust

We respect free competition and aim to deepen our relationships of trust with all suppliers through fair business transactions.

3.Promotion of Developmental Procurement

We promote developmental procurement in order to cooperate with our suppliers in reducing costs as much as possible. We welcome and evaluate new proposals from suppliers who wish to provide their extensive and specialized knowledge and know-how, new technologies and products.

4.Legal Compliance (safeguarding of confidential information)

We comply with all laws and regulations related to procurement in both letter and spirit. We do not disclose any sales or technical information we receive in the course of our procurement activities with suppliers to third parties without the consent of the supplier.

5.Prioritizing the Environment (Green Procurement)

We understand that the conservation of the Earth's environment is one of the highest priorities for humankind. It is our basic policy to procure environmentally friendly materials.

6.Conflict Minerals

In order to fulfill our corporate social responsibility in procurement activities, we will cooperate with our suppliers to ensure transparency in the supply chain and avoid the use of conflict minerals as a financial resource for armed groups, in accordance with Article 1502 of the Financial Regulatory Reform Act (Dodd-Frank Act) enacted in the United States in July 2010.

Initiatives for Sustainable Procurement

By proactively working to contribute to the building of a sustainable society, the Tsubaki Group resolves social issues through its business activities and aims to be a company that meets the expectations of all of its stakeholders. To achieve that aim, deeper collaboration with our suppliers is essential. Accordingly, we have established the Tsubaki Group Supplier Sustainability Guidelines and request suppliers to make proactive efforts aimed at achieving sustainability.

Promotion of Green Procurement

Establishing its Green Procurement Guidelines in 2006, the Tsubaki Group has worked as one with suppliers to promote activities for purchasing materials and components with a low environmental impact. In April 2019, we revised these guidelines in order to more proactively advance efforts to reduce emissions.
In addition, we carry out surveys on the current environmental conditions of major suppliers and conduct additional surveys and local inspections of suppliers thought to have risks, as we work to achieve ongoing improvements.

Requests to Business Partners

  Requests/Orders Raw materials, parts,
packaging materials, sub-materials, etc.
Jigs, tools,
production equipment, etc.
Prerequisite (1) Compliance with environment-related laws on products and business activities Required Required
(2) Management of hazardous chemical substances Recommended*
What we ask of business partners (1) Establishment of an environmental management system Recommended Recommended
(2) Reduction of greenhouse gas emissions
(3) Promotion of resource recycling
(4) Effective use of water resources Optional Optional
(5) Environment-friendly design and product proposals Recommended Recommended

* Management of hazardous chemical substances is required in the event of hazardous chemical substances scattering or falling from equipment onto products or in the event of hazardous chemical substances becoming attached to or transferred onto products through contact with equipment.

Cooperation with Suppliers

Under the Basic Procurement Policy, the Group is advancing a variety of initiatives, such as guarantees of open bidding, pursuit of mutual development through fair business transactions, and proactive evaluation of new technology proposals.
In Japan, approximately 200 of our suppliers are members of the Tsubaki Business Partners Club. The Club fosters friendship among member corporations while allowing the Company to share information with suppliers on its environmental conservation and productivity enhancement activities through the holding of general meetings, regular gatherings, and other events to promote mutual study.

Implementation of Sustainable Education

At Group training sessions, the Tsubaki Techno School lectures, and in level-specific education, we carry out education on topics that include approaches to sustainability (CSR and CSV), demands from international society, and Group initiatives.

Toward a Sustainable Society

The Tsubaki Group is engaged in the “art of moving” and aims to provide value that exceeds expectations
to become a company that continues to be needed by society.